A rapidly improving New Zealand economic picture has elevated New Zealand bond rates above Australia’s by the widest margin in almost 12 months, spearheading a global bond-sell off in response to a more upbeat outlook.

The Australian dollar was trading at US76.28¢ on Thursday, up 0.1 per cent, and threatening a 2018 high. The 10-year government bond yield rose to 1.2 per cent for the first time since March; New Zealand 10-year bond yields are at 1.35 per cent.